Browsing: PanAfrican Energy Tanzania (PAET)

Oil and Gas in Tanzania Wembere Eyasi

Tanzania is not a newcomer to the oil and gas economy. The sector has evolved over the past decade and become a flagship sub-sector that stands to draw billions. The journey to the current standpoint, where Tanzania and a consortium of oil and gas giants have inked preliminary agreements, was tedious but necessary.

Gas exploration has been existing for more than 50 years in Tanzania. The first natural gas discovery in Tanzania was made in 1974 on Songo Songo Island, followed by the second discovery at Mnazi Bay in 1982.

That discovery took the sector’s attention from exploration to commercialization of the two findings, promoting more investments in Tanzania’s onshore and offshore gas explorations.…

Pan African Energy Tanzania

Demand for affordable and reliable energy is on the rise in Tanzania owing to the fast paced economic growth of the country.

The African Development Bank (AfDB) estimates the demand for energy is growing by 10 per cent every year which the bank says ‘reflects the country’s high economic growth.’

To meet this demand, PanAfrican Energy Tanzania (PAET), the first fully Tanzanian owned company has entered into a long-term Gas Sales Agreement (“GSA”) with the Tanzania Petroleum Development Corporation (“TPDC”).

The agreement provides for the supply of up to 20 million standard cubic feet per day (MMscf/d) of natural gas to the TPDC operated National Natural Gas Infrastructure (“NNGI”) in Songo Songo Island, from where the gas will be processed and transported to Dar es Salaam, primarily for power generation.

This new GSA comes only months after last year’s short-term sales agreement that was also inked with TPDC and TANESCO …